Today is National Teach Your Child to Save Day.
The American Banker's Association sponsors this day to help educate our nation's youth about how important saving money is.
It takes a village to make an impact in a child's mind about money. ABA needs the help of parents, teachers, guardians and anyone with influence over a child the importance of saving.
Teaching a child about a savings account just isn't enough anymore. They need an understanding of how to review their bank statements, how interest makes their money grow, how to invest and when to invest. They need to understand the importance of starting to save NOW for retirement.
- Bring your child to the bank to see how things work; you can even ask the manager to
see the vault.
- By opening a savings account for your child, he or she will learn how compounding of
interest adds up.
- If you are able to match funds, whether partially or dollar for dollar, it will help make your child’s goals more attainable while still giving them the sense of accomplishment.
- Don’t just take your child shopping with you, but discuss how much things cost.
- Teach your child how to budget his or her allowance. The American Bankers Association suggests teaching your child to put some money away for the long-term. They suggest: “Keep long-term savings in an investment fund; short-term savings in a bank; and spending money in a jar, piggy bank or wallet. You may also encourage children to save part of their spending money for charity.”
Teach Children to Save 2012: April 24 (www.aba.com)